A Subtotal Used in Evaluating the Performance of a Responsibility

question 68

Multiple Choice

A subtotal used in evaluating the performance of a responsibility center manager, as distinct from the performance of the center, is:

• A) Contribution margin, less traceable fixed costs.
• B) Sales, less committed costs.
• C) Contribution margin, plus fixed costs deferred into inventory.
• D) Contribution margin, less controllable fixed costs.

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Definitions:

Preponderance

In legal terms, the standard of proof that must be met to win a civil case, where the evidence must weigh more in favor of one side than the other.

Evidence

Information or objects presented in court to persuade the judge or jury of an argument's validity.

Proof

Evidence or argument establishing a fact or the truth of a statement.

Respondeat Superior

A legal doctrine that holds employers or principals liable for the wrongful acts committed by their employees or agents while engaged in the scope of their employment or agency.